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1 To complete this report the consultants from Buen Día software and consulting Inc. used reports from the Pan America Health Organization (PAHO) and Foreign Direct Investment, World Bank Group(FDI)


Analysis

We found that Malley Industries Inc. could be marketing to South America in seven countries, where in the initial stage of the study the best probabilities were in Uruguay.

On further analysis, following information from National Health Expenditure of GDP, we discovered there was a substantial possibility for success in the Automotive sector (Sector classification from FDI 2), Chemical and pharmaceutical sector (Sector classification from FDI 3), Social service sector (Sector classification from FDI 18) and in the Transport sector (Sector classification from FDI 23)
The FDI report shows that 85% of total Investment Success Opportunities are centred in four countries: Brazil, Colombia, Argentina and Chile with a total of 57 Foreign Direct Investment Opportunities in these countries.


Recommendation

Our recommendation is to focus our initial search in these four countries, with an emphasis on Brazil and Colombia. Of the opportunities we found for Malley Industries Inc., 60% of them were in these two countries.

In Brazil, the World Bank Board on January of 2009 approved US$235 million loan to Brazil for the Health Network Formation and Quality Improvement Project (QUALISUS). The loan will help improve the effectiveness of Brazil’s universal health care system by supporting the development of regional health care networks. The project will also seek to improve the quality and efficiency of local hospitals and health centres as well as transport and other logistical systems important for health delivery in the targeted regions and populations.

On the other hand Colombia has signed a free trade agreement with Canada that will reduce tariffs of 11.8% for manufactured goods and will help to protect Canadian investment abroad. This FTA has given a strategic advantage to Canadian companies when it comes to business opportunities in Colombia, as the United States has yet to sign a free trade agreement with Colombia. In the Health sector specifically, in 1996, an estimated US$ 300,482,310 was spent, or the equivalent of 10.1% of the GDP (estimated for that year at US$ 4,400 million); 4.1% corresponded to the public sector and 5.9% to private sources. Of the total amount, spending on health promotion and disease prevention came to about 5% of all health expenditure.
June 08, 2009
 
 
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